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World Business Today

News/Business. Colleen McEdwards, Pauline Chiou. The day's global business news with a focus on international business and market trends.

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CNN

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01:00:00

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mpeg2video

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720

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480

TOPIC FREQUENCY

Rupert Murdoch 22, U.s. 20, London 16, Us 12, Rebekah Brooks 11, Europe 10, Murdoch 7, Cnn 5, Uk 5, Asia 4, Hong Kong 4, Tokyo 4, Bskyb 4, Astigmatism 3, Andy Coulson 3, Ibm 3, Cisco 3, United States 3, Roc Multi-correxion 2, Acuvue Oasys 2,
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  CNN    World Business Today    News/Business. Colleen McEdwards, Pauline Chiou. The day's  
   global business news with a focus on international business...  

    July 19, 2011
    1:00 - 1:59am PDT  

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aggressive but your heart,ou want to bring justice to people like caylee anthony and long may you continue. thank you for joining me. >> thank you, friend. >> that was nancy grace. that's all for us tonight. i'm zain verjee at cnn in london. in britain, members of parliament will pepper news corp chief rupert murdoch with tough questions later today, outraged over a string of allegations reporters for the paper hacked mobile phones to get scoops. murdoch's apologized. much more on the story justice ahead on "world business today." one of the first journal itss who exposed phone hacking by "news of the world" has been
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found dead. sean ward said andy coulson hacked into phones. police are not treating the death as suspicious. a u.s. official says a meeting between the u.s. and libya at the weekend was meant to deliver one message, that moammar gadhafi must go. libya called the face-to-face talks in tunisia a first step. the u.s. says the meeting was a one-off event. the women's world cup team soaked up the limelight after bringing japan its first cup title. japan's the first asian nation with a world cup championship. those are the headlines. auto' jane verjee at cnn in london. "world business today" starts now.
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>> a very good afternoon to you from cnn hong kong, i'm alicia tank. >> good morning from cnn london. you're watching "world business today." time to testify, news corp boss rupert murdoch, his son james and ex-news international chief rebekah brooks will prepare to face british legislators. two giants of tech as ibm powers ahead but cisco loses its way. and banks lead the losses as debt ditherring continues to drag the world stock markets. rupert murdoch's power and influence will be put to the test later today. he and also his son, james, will be facing uk legislators in just a few hours from now. they'll also be alongside rebekah brooks, former editor of
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the "news of the world." it's expected to be a harsh grilling for the three individuals over what they knew about alleged phone hacking at the london tabloid "news of the world." those allegations have done quite as much to damage rupert murdoch's reputation as they've done to "news of the world's" stock. it's been plummeting. >> the company's become the target of a hack attack itself. lulzsec is claiming a hack attack with a fake story about murdoch being found dead in his garden. in a tragic turn one of the first journalists to expose hacking at "news of the world" was found dead on monday. sean hull was former "news of the world" employee. police say his death is
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unexplained but not suspicious. hacking allegations led to another resignations, from london's metropolitan police force, john yates has followed. >> we in the police service are truly accountable, those of us who take on the most difficult jobs clearly have to stand up and be counted when things go wrong. however, when we get things wrong, we say so, and we try and put them right. >> yates and stephenson will both be appearing before members of parliament later on but the focus will be firmly fixed on the murr docks and rebekah brooks. atika shubert joins us live from outside the houses in london on what to expect. let's have a look at the questions that mps will have for the three individuals. what are they going to ask,
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first off? >> basically there's two committee hearings here, one focusing on the police investigation and the other focusing on the phone hacking allegations, and that's where rupert murdoch is expected to be. he should be there at around 2:30, that's when they'll be grilled about how much did they know, when did they know it and why didn't they put a stop to it sooner or come forward with more information as to how widespread the scandal was. in addition to rupert murdoch being in the hot seat, james murdoch will be there and rebekah brooks, former "news of the world" editor and chief sbekive of news international. she of course was arrested sunday and released without charge in connection with the phone hacking and she could be limited in what she has to say because of the ongoing police investigations, nina. >> atika, we've had the death of sean hall, former "news of the
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world" employee who was also a crucial whistle-blower her and two top coppers in the land departing as a result. it's the questioning very serious now. >> reporter: is getting serious and with the death of sean hohrer, unexplained but not considered suspicious at this time but he was the one who pointed the finger at andy coulson and david cameron, not only did andy coulson will phone hacking, but he actively encouraged the phone hacking. this threatens the murdoch media empire but really also downing street, that prime minister cameron himself is now taking this very seriously. he is coming back early from south africa today to attend a special day of parliament tomorrow specifically on this issue, and of course, scotland
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yard has been tainted by this with the top cops in the country now resigning. people are wondering just how far does this scandal, does the corruption go? >> okay, atia shubert joining us live from westminster, many thanks for that, atika will also be on the show later on to give us more insight into what we can expect and what the consequences of what's going to be said today will be. manisha? >> also nina you mentioned earlier how the stock price has been affected. we've been tracking the slump in news corp stock in the wake of the hacking allegations. news corp shares actually closed up by just over 2.5%. in australia today, that reprieve coming after a two-year low on monday and as bloomberg reports that news corp is considering replacing rupert murdoch with coo chase caray. the company dismissed
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speculation that murdoch may step down. as for news corp's u.s. shares they sank to a six-month low monday dropping another 5% and the company's loss more than $8 billion in market value in the past two weeks alone. july 5th, which was when those allegations about the scandal started to surface and at that time news corp's share price was $18.54, let's move on, by july the 11th, news corp stock actually reached over $16 a share. now that was the week that rupert murdoch withdrew his bid for bskyb, bring it up to date, this week and here's the share price for this week, and july 18th, monday share price was $15.40. that following the arrest of rebekah brooks, which as some of you may be aware was on sunday. so the political pressure may spread beyond the uk.
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pay tv fox corps has a $2 billion bid out and will see if it goes the same way as the bskyb bid which was withdrawn. >> a news corp newspaper, it goes far beyond the street. >> news corp is being shaken by the hacking scandal but over the last few decades rupert murdoch has built quite an empire. we thought it would be useful to see where all of the capital is coming in from, based on operating income in 2010 and we're going to start with the cable networks. this is the real cash cow of the news corp empire, $2.54 billion, operating income for 2010 representing 55% of the overall bottom line. let's go into the next division,
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fox search light 20th century fox tv production, 24% of the overall group, $1.1 billion, obviously not hugely affected by what's taking place over here in the uk. this is one division that has the big question mark over it, the publishing division, $997 million in 2010, 22% of operating income for the company. we have "the wall street journal" front cover, they purchased that for $5 billion. you have $200 million coming from the uk. not a game changer but whether this spills over into the other businesses that rupert murdoch owns. the next division, u.s. broadcast networks, they have about 37% penetration into u.s. house holds, this represents 9% of the bottom line, $409 million they have, tv stations scattered throughout the united states,
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again, does it spill over because of reputation? right now analysts we spoke to on wall street say not just yet, last division here, sky italia here, scott mockridge, it represents 4% of the operation, not a game changer but feeds in. bskyb would have brought in 15% of earnings per share in 2012 if the deal would have gone through, been held off for 12 to 18 months and it may not happen at all. you take a step back from all the numbers i hoad you, $636 million loss, about 14% of the overall group in overhead and huge loss taken because of myspace.com. the big foray into the internet
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space, sold it for 10% of the overall purchase price. a dent to the news corp operation, can they replace the bskyb revenues? key questions being asked on both sides of the atlantic. >> john with a look at the gargantuan media empire that is news corporation. let's turn to the markets on unresolved debt problems in the united states and also in the eu meant a weak session in asia but it does seem in the first 60 minutes of trading here in europe we could see a bit of optimism returning to some of the markets. european stock markets are for the most part in positive territory and recovering to the tune of 1.4% are the dax is rising the most. we saw the same percentage scale yesterday and the cac 40 up 0.8%.
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ftse not up by much. >> we shot up shot in terms of trading in asia. the ongoing debt problems in the u.s. and the eu very much rattling the regions investors. looking at the numbers, you can tell by the losses no one's happy about this fact that we're in limbo really, certainly on the debt, and people are unhappy with the stress test going on in europe, they think they're too soft. there are the numbers, a push up for the hang seng, others are down, financial stocks some of the biggest losers. >> tuesday session could start on the other side of the atlantic. the u.s. futures markets are pointing to a higher open for the markets with the nasdaq composite poised to open highest by 0.6. silicon valley is going to get a little emptier as the axe
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falls at u.s. technology giant cisco. just ahead on wbt why thousands are about to get thrown out of work. here's a question for you, are u.s. politicians going to take the axe to spending as the clock continues to tick louder and louder, we'll have the latest in the debt debate. tly. roc® multi-correxion 4 zone moisturizer with roc®retinol and antioxidants. lines, wrinkles, and sun damage will fade. roc multi-correxion. correct what ages you. took some wild risks when i was young. but i was still taking a risk with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself. i've been eating healthier, exercising more, and now i'm also taking lipitor. if you've been kidding yourself about high cholesterol, stop. along with diet, lipitor has been shown to lower bad cholesterol 39 to 60 percent. lipitor is fda approved to reduce the risk of heart attack and stroke
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from cnn hong kong and london this is "world business today," welcome back. here are some other top stories this hour. big blue is entering the second century on a high note. ibm reported net income of $3.7 billion, revenue of $26.7 billion. both numbers topped last year's and ibm marked its 100th anniversary. what a way to if. the news wasn't so good for cisco. the u.s. based company announced monday it will have to eliminate
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6,500 jobs, that is a whopping 9% of its workforce. another 5,000 staff will be transferred in a sale of one of its businesses. and a chapter ends in u.s. retail. the once huge book store chain borders is going into liquidation after failing to find a border. it's shutting its 400 store. it filed for chapter 11. u.s. lawmakers try to hammer out a plan to raise the debt ceiling, raters will cut its rate if something isn't reached. moody's will say the ceiling has done little to curb spending there. the white house says that president barack obama is working to make sure there's a
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backup mechanism in place if the u.s. doesn't actually default on its debt. >> he continues to push for the biggest possible deal, if you will. mindful of the fact that we are now less than two weeks away from the deadline, regarding the need to raise the debt ceiling and also having these conversations to make sure there is a backup measure, a failsafe measure which as you know senator mcconnell has been working on. >> plans are one thing, aren't they? there may be a showdown on tuesday. the house of representatives could call a vote on a republican budget plan. it would link an increase in the nation's debt ceiling with a balanced budget amendment. candy crowley has more on that from us. >> reporter: buzzword alert. >> cut cap and balance gets us out of debt over a long period of time. >> reporter: cut a substantial amount of spending to bring down the $1.5 trillion deficit expected this year. cap federal spending at 18% of
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gross domestic product at 24% of gdp now. pass a balanced budget amendment to the constitution that includes spending caps and makes it difficult to raise federal taxes. cut, cap and balance, ccb, is all the rage in some republican quarters. >> the answer for the country is for the president to agree to cut federal spending, to cap federal spending and to put in place a balanced budget amendment. >> the house will be in order. >> reporter: this week the republican controlled house will likely pass a cut, cap and balance bill as a prerequisite to raising the debt ceiling. there are mighty objections from democrats on the hill and in the white house. >> what the amendments do is not just say you have to balance the budget but puts in place spending limitations that force us to cut social security and medicare more deeply than the house budget resolution. >> reporter: what the house will almost surely approve the senate almost surely will not, leaving the debt ceiling issue precisely
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where it's been for months unresolved. if you cannot get the senate to pass what the house surely will, this week, you will allow the u.s. to go into default or go to a plan b? >> i'm going to focus on plan "a" the only plan that will work, the real deal, not a big deal. >> reporter: the most probable deal still in the works would cut spending by $1.5 billion over ten years and let the president raise the debt ceiling through the 2012 election. congress could stop him but in the unlikely event of the veto majority proof in both houses. everybody gets off the hook and avoids economic chaos. >> at the end of the day republican leaders say we will not be the ones to put the government under default. >> reporter: the idea comes from senate gop leader mitch mcconnell has been trashed by conservative leaders ever since. sources say the last ditch mcconnell plan could be on the
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senate floor this week but a republican source believes before the mcconnell bill, the senate will take up cut, cap and balance. even if ccb doesn't pass it has endless possibilities as a cbs campaign bumper sticker. up next more cattle are found to have eaten radioactive feed. that's next. stay with us.
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welcome back to "world business today" on cnn. japan's scrambling to contain the distribution of radiation tainted beef. the government's about to suspend all cattle shipments from fukushima prefecture. that's the epicenter of japan's nuclear crisis. a result of the record earthquake in march. cattle there have eaten feed with high levels of radioactivity, initially the government said 11 cows had been affected and that number has ballooned to 411. those concerns have also hit meat related companies on the stock market. nippon meatpackers was the worst performer, fell more than 4% today. let's stay in gentlemanen pa, the country's in the path of a powerful typhoon and workers at theed iffed if nu fukushima plant had to put a cover on the
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plant. jane, good to see you. >> hi, manisha. >> people in japan will say not good to see another typhoon. where is it going to go? >> actually it's getting close to making landfall across shikoku island. over towards the west, that is the location, located about 480 miles roughly about 700 kilometers to the west of tokyo. the winds right now 130. we're going to continue to see it weaken through the next several days. let's go to the radar so you can get a better idea of an exact location. shikoku, there is the center of circulation getting close to if not already skirting that coastline and then it looks like it's going to be moving up towards the east moving across the prefecture of koichi and
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more than the southern part of the hanshu islands. a better idea as we go to the weather graphics that gives us the track of the typhoon, osaka and it goes to the south of sendai and strong rainfall and winds, next 24 to 48 hours. 26 in some parts 30, 61 in some locations, stronger gusts in some locations. . is going to cause a lot of flooding problems. this graphic gives you an idea of the precipitation totals we're talking about, anywhere from 37 millimeters from koichi, 62 in osaka and 126 in parts of tokyo. we talked to paula hancocks, it's been raining for the last several hours in parts of tokyo and the precipitation will get worse into the overnight and
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through tomorrow. after that the weather will greatly improve across the region. manisha. >> that will be a huge relieve, big number, 126 for tokyo, wow. jen thank you very much for bringing us up to date on that. let's come back to the united kingdom. the climate is tense to say the least. up next we'll be looking into the corruption allegations that are dogging the british police force as rupert murdoch squares off with mps over the phone hacking scandal that engulfed his media empire, up just after this break. there's great newsaid for people with astigmatism. acuvue® oasys for astigmatism. he said it's the only lens of its kind designed to realign naturally with every blink and created with hydraclear® plus. i'm seeing more clearly, crisply, comfortably, all day long. now life doesn't have to be a blur. [ male announcer ] learn more at acuvue.com.
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from cnn london i'm nina dos santos. >> and i'm manisha tank. welcome back to "world business today." top story, rupert murdoch will be facing uk lawmakers in a few hours, as the tabloid hacking scandal spreads to the top level of news corp. the 80-year-old has been at the helm for the past 50 years. >> murdoch will be testifying alongside his son, james, and as dan rivers reports now it's the moment that could define his entire empire's future. ♪ >> reporter: when big ben strikes 2:30 in london the bell will be tolling for rupert murdoch, his son james and former chief executive rebekah brooks.
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their appearance may be the most important for the most entire careers. rebekah brooks may be unable to shed light on what really happened. john prescott think rupert murdoch's got a lot to answer for. >> everybody is scared to do death that he doesn't like so he's the spider in the middle of the when and it's about time we took him on. >> reporter: the chairman in charge of the xwriling is keen to hear why the company previously told him phone hacking was just the work of a rogue reporter, then later admitted that wasn't true. >> we took evidence from senior executives of news international and rupert murdoch has publicly stated parliament was misled. parliament takes that very seriously and so we want to ask him why he has discovered that we have been misled, who misled us and how long he's known about
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that. >> reporter: for rupert murdoch, this isn't a court appearance but it may feel like he's on trial. for years, rupert murdoch has been behind numerous cruel tabloid headlines. now suddenly he's on the front page himself, and that's a pretty awkward place for a press baron to be, suddenly the target of what they call in britain the gutter press. dan rivers, cnn, london. >> a lot of questions probably centers on who knew what it and when. as we've been telling you the phone hacking scandal has cost london's top two police officials their jobs. let's go back to atika shubert. the two high profile resignations pretty much one after another. the timing also important but quite incredible what's unfolded in the last few days. >> reporter: really is, and it has completely tainted the british police. what lawmakers are looking at
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now is, one, did police ignore the phone hacking scandal when they should have investigated further and two, did they take police payments. they want to know how far the corruption goes in scotland yard. former senior police officer john yates is the latest head to roll. now under investigation for his failed review of the police phone hacking investigation and according to the independent police complaints commission allegations of "inappropriately securing employment for the daughter of a friend." yates resigned on monday before the investigation was announced, in a statement to the press he said, though regrets some decisions, his conscience is clear. >> as i said recently it is a matter of great personal regret that those potentially affected by phone hacking were not dealt with appropriately. sadly, there continues to be a huge amount of inaccurate, ill informed and on occasioned
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downright malicious gossip being published about me personally. >> reporter: on sunday top cop paul stephenson resigned. just how cozy was the relationship between british police and news international? did police pay and look the other way when it came to phone hacking? according to police documents from news international showed what appears to be "inappropriate payments" made to police officers between 2003 and 2007. rebekah brooks, former "news of the world" editor bluntly admitted as much to lawmakers in 2003. >> one element whether you ever paid the police for information? >> we have paid the police for information in the past and it's been -- >> and will you do it in the future? >> it depends on -- >> reporter: fellow executive andy cuolson added the payments
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were within the law but how far do such payments if? last week lawmakers grilled andy haimon, responsible for the initial failed investigation into phone hacking, they asked him had he ever received payments and this was his answer. >> good god, absolutely not. i can't believe you suggested that. >> reporter: after hayman resigned in 2007 he became and remains a paid columnist for "news international" and parliament brushed off suggestions the job was in effect a payoff. a poll for "the sunday mirror" and "the independent" sound 63% of respondents said they trust the police less as a result of these allegations. now one of the things lawmakers will really be focusing on is the relationship between senior police officials and "news of the world" executives, specifically neil wallace, former deputy editor of "news of
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the world" apparently he was paid by police to be a communications consultant for about a year, and there are also allegations senior officials were being wined and dined by "news of the world" even as news international was under investigation so all of the details will be scrutinized by lawmakers, manisha. >> it's pretty murky out there, going to be a very important testimony that we'll see today. atika thank you for putting us in the picture. >> let's see how this is affecting markets here in europe, 90 minutes into the trading day and it seems as though we started out for the moment on a positive note after qul yesterday's heavy losses. ftse up in excess of 0.5%. bulk of the gains from the dax and frankfurt up 1.5%. >> bit of a different picture in asia. ongoing problems in the u.s. and eu rattling investors so much.
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financial stocks some of the biggest losers, nikkei down, a public holiday on monday so picking off of the news we've been seeing collated in the last couple of days. the hang song the standout moving up almost 0.5% by the close. >> it was a gloomy way to start the week on wall street with u.s. investors still unable to shake off concerns about debt, both at home and also abroad. he here's with how it looked on wall street. >> stocks on wall street took a tumble to the week. concerns will growing debt problems in the u.s. and europe put investors on edge and with no major economic or earnings reports out monday, those issues took center stage. the dow industrials fell 94 points closing at 12,385, the nasdaq and s&p 500 lost just shy
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of 1% each. gold prices hit another record high settling above $1,600 an ounce for the first time. gold is considered a safe haven investment and with so much uncertainty in the marketplace, investors are lining up to buy the precious metal. meantime lawmakers in washington continue to work towards a government debt deal. the deadline is still august 2nd, if there is no deal at that point, the u.s. cannot approve more debt and cannot pay some of the bills that have come in. president obama said progress is being made but gave no details. one thing both sides can agree on the u.s. needs to have a long-term plan to increase its debt. coming up, reports from coca-cola and wells fargo and bank of america, we'll get the latest tally of housing starts and building permits, leading indicators for the battered housing market. that's a wrap of the day on wall street. i'm alison kosik in new york. >> the u.s. futures are pointing
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to a higher open, the nasdaq composite futures rising the most up by nearly 0.75. as a new deadline approaches for greece we'll have the latest on the efforts to stabilize the european economies and also we'll see how the nervous markets are reacting to that, just ahead on "world business today." [ female announcer ] the healing power of touch can be even more powerful, with precise pain relieving cream. it blocks pain signals fast
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stunning shot there of hong kong's victoria harbor. i never tire of looking at it. looking pretty foggy on the horizon, the clouds are low, represents how we feel about the markets this session, a cautious trade. a warm welcome back to "world business today." we're live from hong kong as you're able to see and lon con. nina? market tensions are riding high at the moment as investors wonder if europe's debt crisis will worsen. that prospect will be weighed
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heavily at an emergency summit going on thursday in brussels as the leaders of the countries will be meeting. officials will be attempting to finalize a bailout package for greece. when it comes to asia, stocks are worrying over europe's sovereign debt and the debt limit drama unfolding in the united states. asian investors are concerned that policymakers in europe seem to be ditherring rather than dealing with the ongoing crisis. all of this also comes after last week's european bank stress tests which seems to little restore faith in the banking sector. investor fright has global markets taking flight into safe havens now. gold for instance rose to a new record on monday, vaulting well past $1,600 an ounce. gold is standing just above that figure currently up by $3.62 as you can see there. joining me now to discuss what's going on during these busy times is louise cooper, market analyst
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at bgc partners, joins us on the trading floor in london. these are busy times. let's start out by talking about what's going to go on, on thursday. are you for instance speaking to some of your clients and people you're speaking to in the markets, are you hearing they're getting increasingly frustrated with politicians here? >> without a shadow of a doubt. you mentioned difficult markets, i was sitting with one broker earlier and he said in these markets, anything can happen. it's tricky out there, and i think that's pretty much sums it up really. we've got a one day conference on thursday, can the problems of the eurozone crisis be solved in one day by a bunch of politic n politicians who don't speak the same language? they listen to each other via head phones and through an interpreter. there's a lot of skepticism really, crisis by committee never works. it's made up of politician who, frankly, a lot of people really
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doubt. they understand financial markets. >> the other thing we should be mentioning leewouise is europea bank stress tests. they seem to ask more questions than they answer. >> the capital tier one ratios, basically that indicates the cushion a bank has to absorb losses so how big are losses a bank can absorb before it goes bust. that's been the focus. when it hasn't been focused by the european bank authority is on funding. this is almost the immediate problem. if a bank cannot borrow money short term, a day, overnight, for a week, things spiral out of control quite quickly. what we're seeing at bgc on the wholesale funding markets is the italian and spanish banks are finding it increasingly difficult to find companies or banks or other financial institutions willing to lend
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them money. if they do find somebody willing to lend them money then it's short term, not willing to lend for very long and higher interest rate, and they demand collateral. now for the greek, irish and portuguese banks they're out of the game already, nobody is willing to lend them money and the ecb is the only game in town. the ecb cannot take the place of the entire european wholesale bank market. >> the questions about solvency come to a head when you've got bond deals for countries like spain, one of europe's largest economies approaching 6.33% on the bond markets in terms of their yields, if economists are agreed that 7% is the cutoff point beyond which these countries can't finance themselves on the open market, what are the konconsequences? they could be huge. >> that is exactly what everyone's watching out for. yesterday we had italian ten-year government bonds trading over a 6% yield, that's
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a crucial level. because at that level it becomes very expensive for italy to fund its 1.6 trillion euro debt pile. spain as well as you said up to 6.3% yesterday, again becoming expensive to service to pay interest on its debt. those two markets have actually rallied a little bit today but again, watch out. i get a sense that hedge funds are just starting to test some of these lows and see if any buyers come in for these levels. i think thursday will be a really important day. it could be a little wild out there on thursday if these politicians don't come up with the goods. >> okay, louise cooper joining us there from bgc partners in the city of london. many thanks for that. man isha? >> baton down the hatches thursday. straight ahead we'll examine
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rupert murdoch's skillful or not so skillful handling of the phone hacking mess. stay with us right here on "world business today."
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live from london and hong kong, this is "world business today." welcome back. rupert murdoch, his son james and rebekah brooks are preparing to face a committee of british mps in a few hours. as the phone hacking scandal
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grows news corp is creating a new independent body to tighten up its ethical standards but it will take more than that to convince british legislators to give murdoch an easy rate. jim bolden looks at how he's managed or mismanaged the scandal. >> reporter: an apology in person friday to the family of a murdered teenagers who phone was allegedly hacked in 2002 by those working for his "news of the world" and apology in many of his newspapers saturday rupert murdoch wrote "we are sorry for the serious wrongdoing that occurred. we regret not acting faster to sort things out." part of sorting things out, murdoch's news corp hired pr firm edelman. the editor of "the guardian," which broke many of the hacking stories has some sympathy. >> it's out of the control for the last ten days but i'm not surprised because the story was
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having so much, the story was changing so much from day-to-day, i think it would test any organization so i think there are signs they are beginning to get a grip. >> reporter: max clifford himself an expert on crisis management alleged his phone was hacked. he sued the "news of the world," a settlement was reached last year. in the past he has given a bit of advice to the former executive rebekah brooks, though she denied wrongdoing, clifford says if she had any knowledge of who was hacked she should reveal it before someone else does. >> bring it out yourself, it will be damaging but nothing like as damaging if someone else brings it out, but i think that the feeling was i can only assume the feeling that news international was this is not going anywhere. it's going away, dead and buried. >> reporter: one big pr snafu was saying no when asked to appear before parliament.
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>> one was tell her to go to hell and the other camp said that is not going to look good. >> reporter: bottom line according to max clifford -- >> if it's the go to go out, bring it out, control it yourself and they missed a golden opportunity and they're paying for it now. >> reporter: with the murdoch empire under ever more scrutiny, what could repair or indeed further damage the reputation of rupert murdoch and james murdoch, the chairman of news international, will be how they answer questions before lawmakers here on tuesday. jim bolden, cnn, london. >> of course cnn will have special live coverage of tuesday's testimony, you can see rupert murdoch, his son, james, and rebekah brooks testify before that house of commons committee starting at 9:30. .in hong kong, that's 3:30 p.m. in central europe and 2:30 p.m. in you' are if you're in london. at the markets within the
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past hour and a half of trading as you can see a number of the markets still managing to hold onto early morning gains, recovering somewhat after yesterday's losing session of course, still many investors, louise coopers from bgc partners telling us no less than ten minutes ago many an investor firmly has their eye fixed on the debt situation going on at the united states and also here in europe. in the u.s. meanwhile futures are still pointing higher in premarket trading. investors will have plenty of corporate news to keep them busy. trading starts on, when the trading starts this tuesday, coca-cola, john john&johnson and bank of america are reporting before the bell and goldman sachs is another one we'll be looking out for. apple will open its books after the close of trade. it's going to be a big one for earnings and that is about it, though, from us. this edition of "world business today" for now. >> good-bye for now.
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-- captions by vitac -- www.vitac.com
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